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SWA new city? SHOCKING
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Alaskaairlines
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PIT might make sense, but costs high....
Southwest keeps eye on Pittsburgh market
Wednesday, October 08, 2003
By Mark Belko, Post-Gazette Staff Writer
A top official for Southwest Airlines says he sees opportunities for expansion at Pittsburgh International Airport, where US Airways is threatening to shut down its hub in January.
John Jamotta, Southwest director of schedule planning, told the Dallas Morning News that the discount airline sees opportunities in St. Louis, where American Airlines is scaling back its hub, and in Pittsburgh, where US Airways could close down its hub if it doesn't get the debt relief it is seeking.
Jamotta could not be reached yesterday.
Southwest spokeswoman Christine Turneabe-Connelly characterized the airline's interest in Pittsburgh as "no more or no less" than its interest in other cities it is considering.
"Certainly we're interested in what's going on in Pittsburgh but no more or no less than we are in other cities," she said.
In the Dallas Morning News, Jamotta said the carrier plans to announce one new destination at the end of this year and will consider expanding at airports where its competitors are cutting back. It also may boost its presence in Florida, where it now flies dozens of daily flights.
Southwest has been one of a number of carriers Allegheny County officials have been courting to start or expand service in Pittsburgh, given the US Airways situation.
To date, Southwest has not committed to starting any service here, county Chief Executive Jim Roddey said.
"I think that Southwest is interested in several markets. But they are very deliberate and I'm sure they are waiting and watching to see what happens with US Airways," he said.
Roddey said several discount carriers have expressed an interest in the Pittsburgh market. He believes that "either one or more will initiate or increase flights here."
He added he hoped Southwest would start service in Pittsburgh even if US Airways decides to retain its hub.
However, Southwest rarely enters a market dominated by a single hub carrier. Turneabe-Connelly said the competitive environment at an airport is one of a number of factors the airline considers in deciding on an airport.
Another important factor is cost. In a background paper on how it selects a new city for service, Southwest stated that a "particular airport must be in line with the airline's cost structure."
On average, the airline wants a per-passenger cost no higher than $4 to $5, although that could vary from city to city.
That could pose a problem for the Pittsburgh airport, where the per-passenger cost is now $9.56 and could end up being far higher if US Airways ends its hub operation and the amount of connecting traffic drops dramatically.
Other factors Southwest considers include the quality and availability of airport facilities, the amount of local traffic, whether the market is overpriced and under-served, and how the city would fit into the airline's existing network.
While Pittsburgh without a US Airways hub might be more attractive to Southwest, the airline also will consider those other factors before deciding whether to enter the market, Turneabe-Connelly said.
"We're very conservative about our growth," she said. "We're very deliberate in watching customer demand and then following that customer demand."
As it tries to recruit new carriers, the county also is trying to reach a deal with US Airways to lower its costs at the airport.
The talks started after US Airways rejected all of its airport leases, effective Jan. 5, before emerging from bankruptcy.
If no deal is reached by that date, the airline could shut down its hub. US Airways is seeking to cut the airport's $673 million in debt by $500 million.
The state and the county are expected to respond with a counter proposal later this month.
Southwest keeps eye on Pittsburgh market
Wednesday, October 08, 2003
By Mark Belko, Post-Gazette Staff Writer
A top official for Southwest Airlines says he sees opportunities for expansion at Pittsburgh International Airport, where US Airways is threatening to shut down its hub in January.
John Jamotta, Southwest director of schedule planning, told the Dallas Morning News that the discount airline sees opportunities in St. Louis, where American Airlines is scaling back its hub, and in Pittsburgh, where US Airways could close down its hub if it doesn't get the debt relief it is seeking.
Jamotta could not be reached yesterday.
Southwest spokeswoman Christine Turneabe-Connelly characterized the airline's interest in Pittsburgh as "no more or no less" than its interest in other cities it is considering.
"Certainly we're interested in what's going on in Pittsburgh but no more or no less than we are in other cities," she said.
In the Dallas Morning News, Jamotta said the carrier plans to announce one new destination at the end of this year and will consider expanding at airports where its competitors are cutting back. It also may boost its presence in Florida, where it now flies dozens of daily flights.
Southwest has been one of a number of carriers Allegheny County officials have been courting to start or expand service in Pittsburgh, given the US Airways situation.
To date, Southwest has not committed to starting any service here, county Chief Executive Jim Roddey said.
"I think that Southwest is interested in several markets. But they are very deliberate and I'm sure they are waiting and watching to see what happens with US Airways," he said.
Roddey said several discount carriers have expressed an interest in the Pittsburgh market. He believes that "either one or more will initiate or increase flights here."
He added he hoped Southwest would start service in Pittsburgh even if US Airways decides to retain its hub.
However, Southwest rarely enters a market dominated by a single hub carrier. Turneabe-Connelly said the competitive environment at an airport is one of a number of factors the airline considers in deciding on an airport.
Another important factor is cost. In a background paper on how it selects a new city for service, Southwest stated that a "particular airport must be in line with the airline's cost structure."
On average, the airline wants a per-passenger cost no higher than $4 to $5, although that could vary from city to city.
That could pose a problem for the Pittsburgh airport, where the per-passenger cost is now $9.56 and could end up being far higher if US Airways ends its hub operation and the amount of connecting traffic drops dramatically.
Other factors Southwest considers include the quality and availability of airport facilities, the amount of local traffic, whether the market is overpriced and under-served, and how the city would fit into the airline's existing network.
While Pittsburgh without a US Airways hub might be more attractive to Southwest, the airline also will consider those other factors before deciding whether to enter the market, Turneabe-Connelly said.
"We're very conservative about our growth," she said. "We're very deliberate in watching customer demand and then following that customer demand."
As it tries to recruit new carriers, the county also is trying to reach a deal with US Airways to lower its costs at the airport.
The talks started after US Airways rejected all of its airport leases, effective Jan. 5, before emerging from bankruptcy.
If no deal is reached by that date, the airline could shut down its hub. US Airways is seeking to cut the airport's $673 million in debt by $500 million.
The state and the county are expected to respond with a counter proposal later this month.
But it never hurts to look....
By Jim Ritchie
TRIBUNE-REVIEW
Wednesday, October 8, 2003
Southwest Airlines officials arrived in Pittsburgh Tuesday to scout the airport and passenger market but said the timing of the "routine visit" was coincidental and not related to local leaders' ongoing negotiations with US Airways.
Public officials as prominent as Gov. Ed Rendell have named Dallas-based Southwest as one of the possible replacement airlines that could combine to fill some of the void left if US Airways shuts down its hub at Pittsburgh International. So, the timing of the airline's visit yesterday was curious, but left unexplained by local officials.
Southwest spokeswoman Christine Connelly described the visit as routine and one made by airline staff to several cities each year in locations where the carrier has some interest in adding flights.
"It is a complete coincidence with the timing," she said. "We certainly don't want to be pulled into those discussions."
Southwest currently does not have any flights at Pittsburgh International.
Rendell has openly discussed the state's hope that it could attract Southwest to Pittsburgh International. The airline, however, has not said it has a real interest in expanding into Pittsburgh.
"With a city the size of Pittsburgh, there are possibilities there. But it's not to say Pittsburgh is on the short list," Connelly said.
US Airways has called for the Allegheny County Airport Authority to cut its annual costs by reducing $673 million in airport debt by $500 million. By doing so, the airline would reduce its annual costs.
If the airline and a state negotiating team don't reach a deal, US Airways has threatened to close its Pittsburgh hub, where it has nearly 400 daily flights and 7,300 employees. US Airways would not comment about Southwest's visit.
Rendell and county Chief Executive Jim Roddey have pledged that any cost-cutting deal offered to US Airways also would financially benefit the other airlines operating at Pittsburgh International.
The authority promotes itself to airlines regularly, but it's not known whether the authority has discussed similar financial incentives to carriers like Southwest in an effort to attract competition.
"We plan to meet with all the discount airlines, including Southwest," Roddey said. "Several discount carriers have expressed an interest in serving the Pittsburgh market, and I believe that either one or more will initiate or increase flights here. Southwest is one of the airlines we are talking to, but we will not have anything to report publicly until such time as one of the airlines itself is ready to make an announcement about Pittsburgh."
By Jim Ritchie
TRIBUNE-REVIEW
Wednesday, October 8, 2003
Southwest Airlines officials arrived in Pittsburgh Tuesday to scout the airport and passenger market but said the timing of the "routine visit" was coincidental and not related to local leaders' ongoing negotiations with US Airways.
Public officials as prominent as Gov. Ed Rendell have named Dallas-based Southwest as one of the possible replacement airlines that could combine to fill some of the void left if US Airways shuts down its hub at Pittsburgh International. So, the timing of the airline's visit yesterday was curious, but left unexplained by local officials.
Southwest spokeswoman Christine Connelly described the visit as routine and one made by airline staff to several cities each year in locations where the carrier has some interest in adding flights.
"It is a complete coincidence with the timing," she said. "We certainly don't want to be pulled into those discussions."
Southwest currently does not have any flights at Pittsburgh International.
Rendell has openly discussed the state's hope that it could attract Southwest to Pittsburgh International. The airline, however, has not said it has a real interest in expanding into Pittsburgh.
"With a city the size of Pittsburgh, there are possibilities there. But it's not to say Pittsburgh is on the short list," Connelly said.
US Airways has called for the Allegheny County Airport Authority to cut its annual costs by reducing $673 million in airport debt by $500 million. By doing so, the airline would reduce its annual costs.
If the airline and a state negotiating team don't reach a deal, US Airways has threatened to close its Pittsburgh hub, where it has nearly 400 daily flights and 7,300 employees. US Airways would not comment about Southwest's visit.
Rendell and county Chief Executive Jim Roddey have pledged that any cost-cutting deal offered to US Airways also would financially benefit the other airlines operating at Pittsburgh International.
The authority promotes itself to airlines regularly, but it's not known whether the authority has discussed similar financial incentives to carriers like Southwest in an effort to attract competition.
"We plan to meet with all the discount airlines, including Southwest," Roddey said. "Several discount carriers have expressed an interest in serving the Pittsburgh market, and I believe that either one or more will initiate or increase flights here. Southwest is one of the airlines we are talking to, but we will not have anything to report publicly until such time as one of the airlines itself is ready to make an announcement about Pittsburgh."
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